European stocks closed lower Tuesday, as markets continue to focus on news and comments from the World Economic Forum in Davos, Switzerland.
The regional Stoxx 600 index provisionally ended down 0.3%, with most sectors and major bourses in negative territory.
Utilities led losses, down 1.2%. Fashion brand Hugo Boss saw the steepest decline, down 9%, after missing analyst forecasts for its earnings.
European Central Bank officials have expressed a series of divergent views at the summit so far, but have largely pushed back on market expectations for interest rate cuts starting as soon as the spring.
Austrian central bank head Robert Holzmann, known as an ECB arch-hawk, told CNBC that there were threats to the inflationary picture that could mean rates do not move lower this year.
France’s François Villeroy de Galhau said he expected a cut to take place this year, but that it was too early to discuss the season when it might occur. The more dovish Mário Centeno of the Portugese central bank would not be drawn on a timeline, but stressed that euro zone inflation was on a good trajectory.
The annual forum stepped up a gear on Tuesday, featuring special addresses by Chinese Premier Li Qiang, European Commission President Ursula von der Leyen, and Ukrainian President Volodymyr Zelenskyy.
Asia-Pacific markets fell overnight, with Japanese stocks also halting their record-breaking rally since the start of the year.
U.S. stocks were also lower as Wall Street awaits December retail sales data due Wednesday and bank earnings that will provide a better picture of the state of the American consumer.
